Australia, New Zealand Examine Health Claims, Labeling (Health Claims Down Under)

After almost four years, Proposal P293 is nearing the end of its approval process. The time for substantiated health claims seems to be ripe for the picking, as recent reports suggest consumers would be 10 to 26 percent more likely to consume products with proven health benefits. The ability for consumers to make better food choices in an easier and truthful context may also translate to a 20 percent increase in product sales.⁵

Substantiation varies widely across jurisdictions, but the commonality is the use of good science to prove efficacy of any product claim. The recent update to the Australia/New Zealand market is desperately needed given the huge number of companies making labeling and marketing claims (Figure 4). If the industry is to make transparent to the public that it is truthful and offers foods and beverages with meaningful health effects, it must operate within a framework that is clear and enforceable.

Click the chart to enlarge.

Finally, what will be the impact on companies that cannot meet the new standards? According to a recent report by the Centre for International Economics, the results of a cost-benefit analysis indicated almost 80 percent of products are expected to be unaffected or not impacted. Around 10 percent of products will be eligible to make new claims, providing new marketing opportunities. However, negative impacts in total will affect about 12 percent of products. Given the rapid growth of the category, these are exciting times. Those with an eye on innovation and science—and willingness to re-label or formulate to take full advantage—will likely to experience rapid growth under these regulatory changes.

Mark J. Tallon, Ph.D., is chief science officer of NutriSciences Inc., a London-based consultancy firm specializing in global health claim substantiation, product development and technical writing. For more information, visit NutriSciences.net. For a list of references, contact Tallon directly at oxygenix2004@aol.com.